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Strapped for cash, your neighbor makes you the following offer.He will pay you back the money he borrows today over the next 13 years.He will
Strapped for cash, your neighbor makes you the following offer.He will pay you back the money he borrows today over the next 13 years.He will make yearly payments with the first payment being for $1086 at the end of this year.The payments will grow by 18% every year thereafter.If the appropriate discount rate is 8%, how much would you be willing to lend your neighbor today?
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